| The Institute of Chartered Accountants of India has said to increase tax revenue the Centre should widen the tax base by covering all businesses including small scale manufacturing, job workers and dabas.
Other businesses like tailors, small restaurants, home delivery outlets, auto spare servicing, software ancillary units and other small businesses whose sales turnover or gross receipts were less than Rs 40 lakh could also be brought under it, the ICAI has said in its pre-budgement memorandum to the Centre.
To promote India as favourable holding company, destination, it has also suggested that the government adopt the allowance of underlying tax credit mechanism for the stream of dividend income. Under the scheme, credit was given by the country where the parent company was a resident not only for the tax withheld at source on the dividend payout by the overseas subsidiary but also in respect of the tax suffered on distributable profits, the ICAI said.
To check tax avoidance, the department concerned could provide information regarding government tenders where the value exceeded Rs 10 lakh.
Information regarding sales and purchases of shares exceeding Rs 5 crore in the case of day traders can be filed by the concerned brokers themselves who were dealing with them.
Receipt of donations by trusts or institutions exceeding Rs 1 lakh may be filed by themselves, the institute has suggested. |
